Nestle Nutrition confident of double-digit growth in 2006

Emilyn LooFunny. A press-release claiming that Nestle is working on customers' well-being and proper awareness. At the same time Nestle's Enviga appears to be a fraud. Read about growing profits of Nestle below.

NESTLE Nutrition, a division of Nestle Malaysia, expects its healthcare nutrition business to continue a double-digit growth this year, driven by greater awareness on health and well-being in Malaysia.

Nestle Nutrition business manager for healthcare & performance nutrition, Emilyn Loo, said healthcare nutrition registered between 30 and 40 per cent growth in sales over the past six years.

“The sales over the years were encouraging despite the products still in infancy stage and they are not fast moving consumer items.

“We aim for aggressive growth as we want to raise consumer awareness, provide education and introduce more products,” she told Business Times on the sidelines of Nourishing Malaysia Showcase in Kuala Lumpur last week.

The two-day showcase, which ended on November 23, was part of Nestle Malaysia’s efforts to enhance the public’s awareness on its nutritional products.

Nestle Nutrition comprises three businesses namely infant nutrition, healthcare nutrition and performance nutrition.

Nestle Malaysia established the healthcare nutrition business in 1998 with the launch of several healthcare products.

Nestle healthcare nutrition products include milk-based powder drinks and cereal bar s.

Loo said the products are for people with special dietary needs such as diabetics, stroke patients, pre- and post-surgical patients, as well as health-conscious consumer s.

The cereal bars are manufactured at Nestle Malaysia’s factory in Negri Sembilan, which makes Malaysia the only country outside Europe that manufactures products under Nestle healthcare nutrition business.

She said the Malaysian nutrition cereal bars are exported to countries like Hong Kong, Taiwan, Philippines and even France, a country that has strict policy on healthcare food.

Loo said healthcare nutrition’s contribution to Nestle Malaysia’s total revenue is expected to increase as the product range has great potential as the preferred and trusted nutritional solutions for consumers in Malaysia.

Currently, the contribution of healthcare nutrition to Nestle Malaysia’s total sales turnover is very small, which is less than one per cent.

Nestle Malaysia’s total revenue in 2005 is RM3 billion.

Globally, the healthcare nutrition business contributes about five per cent of Nestle sales worldwide in 2004.

Loo said the products are marketed through pharmacy and hospital channels in Malaysia but Nestle may consider selling the products on supermarket shelves if there are more products available in the range.

© Copyright 2006 The New Straits Times Press